Where are Canadian House Prices Heading?
CIBC released a report on Canadian House prices this week that had a couple of key messages. Economoist Benjamin Tal warns us to be cautious when using average price figures to forecast the Canadian housing market. As I've wirtten in this blog in the past, average house price figures can be skewed by an increase in luxury home sales.
Vancouver's luxury real estate market is skewing average home price figures for Canada. When we remove Vancouver from the calculation the increase in Canadian House prices drops to 5.6% from 8.6% when we include Vancouver.
Tal also concludes that a crash in house prices is unlikely because the two pre-conditions for a crash, 1) a significant increase in interest rates and 2) high number of high-risk mortgages, are not big risks in Canada.
Canadian Housing Prices— Beware of the Average - pdf (CIBC)
Will the housing boom last indefinitely? (Globe and Mail)
Housing correction coming: Sharp or slow? (Toronto STar)
House prices may have hit the top (Globe and Mail)
Home price appreciation seen slowing (Reuters)
Other Real Estate News
Open MLS wider, watchdog tells realtors (Toronto Star)
GTA housing demand surging (Toronto Star)
Average Toronto home price passes $500K (City News)
Condo Sales and Prices Up in June (True Condos)
The key to real estate success is knowledge (Toronto Star)
This Toronto parking spot costs $100,000 a year (Toronto Star)
TTC makes ‘dumbest decision ever,’ former head warns (Globe and Mail)
Neighbourhoods must remain a priority, regardless of name (inside Toronto)
Goin' Down the Davenport Road (Torontoist)
Big Changes Proposed for Downtown Yonge (Torontoist)
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July 8, 2011This Week In Real Estate |